Industry News
Saudi Arabia’s ambitious plan to turn the desert into a snow paradise — in a project known as Trojena — is increasingly looking dead in the water. After losing the 2029 Asian Games to Almaty, Kazakhstan, earlier this year, a recent Wall Street Journal (WSJ) report reveals that two vital construction contracts have been terminated by the Saudi government.
- Related: Saudi Arabia Completes Key Tunnel as Desert Ski Resort Trojena Moves Towards 2029 Asian Winter Games
In a press release on March 25, Italian construction firm Webuild announced that NEOM has terminated construction of three dams the company had been tasked with building, as well as the architectural structure “The Bow.” The three dams were supposed to feed a large artificial lake at the heart of the ski resort. The company said the project was approximately 30% complete at the time, with about €2.8 billion ($3.2 billion) worth of work still unfinished. Webuild had more than 5,000 employees working on the three dams.
In a separate statement, Malaysian engineering firm Eversendai Corporation Berhad said it had also received notice that its contract for structural steel works at the Trojena Ski Village had been terminated, effective March 26. The company stated it had fulfilled its obligations up to that point and suggested the decision may be linked to broader geopolitical factors in the Middle East. Eversendai added that it expects to be compensated for completed work and demobilization costs, even though a significant portion of the project was still unfinished at the time of termination.
Trojena is part of the larger NEOM project spearheaded by Saudi Crown Prince Mohammed bin Salman. Announced in 2022, the resort was envisioned as Saudi Arabia’s first-ever ski destination and a flagship development within the broader NEOM initiative. Initial plans called for completion in 2026, with the resort expected to host the 2029 Asian Winter Games and attract hundreds of thousands of visitors annually. The 2026 completion is clearly no longer on the books, and the Asian Winter Games have been passed on to Kazakhstan. The ski resort could possibly still take shape, but clearly not at the moment, and is unlikely to move forward in the near term amid broader geopolitical instability in the region.
SnowBrains reported in August 2025 that the project was at risk, citing insider reports of delays and funding issues for NEOM. Whether this is a full cancellation or a pause remains officially unclear, but the combination of geopolitical instability, budget overruns, and the loss of two anchor contractors paints a bleak picture for MBS’s desert skiing dream.
In February this year, the Olympic Council of Asia officially confirmed that the 2029 Asian Winter Games will instead be held in Almaty, Kazakhstan. The reassignment of the 2029 Asian Winter Games to Almaty effectively removed the project’s most critical deadline — and with it, much of the urgency driving construction.
That change comes amid broader challenges facing NEOM, where multiple large-scale developments have reportedly been scaled back or delayed due to rising costs, logistical complexity, and shifting priorities. Trojena, which requires building an entire ski resort ecosystem from scratch in an arid environment, was always one of the most technically demanding—and controversial—components. NEOM is adamant that the cancellation simply means a refocus or pivot in the resort’s construction. However, the termination of the dam system, which was intended to supply a 2.8-kilometer artificial lake central to snowmaking, hydroelectric power, and year-round tourism, calls the entire concept into question. The lake was supposed to be used for hydropower, to feed the snowmaking system, and to host several aquatic activities to ensure the resort would draw tourists year-round.
Trojena is part of Saudi Arabia’s ambitious NEOM project and is located about 30 miles (50 km) from the Gulf of Aquaba. Several of the NEOM projects, including the much-debated The Line project, have seen significant funding cuts in the recent past. The Trojena site is located in the Sarawat Mountains, a mountainous region ranging from 4,900 to 8,500 feet (1,500 to 2,600 meters) in altitude. Temperatures in the area range from -17°C (1.4°F) to 22°C (71.6°F) in winter but snowfall is fairly rare as the area is typically very dry. The resort will have to rely on man-made snow as well as dry slopes.
The immense scale of the project has often drawn environmental criticism and raised questions about its feasibility. With a workforce of approximately 140,000 people, Trojena is the largest construction site on Earth. How, if, and when the project will move forward is currently uncertain. For now, construction of other infrastructure appears to be continuing, but the future of the year-round desert resort is uncertain. What was once marketed as a revolutionary leap for winter sports — bringing skiing to the desert — now risks becoming a cautionary tale about the limits of mega-project ambition.
